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By L I. Rozman

"There have always been development projects that fall short of expectations. In the last decade, we have seen more than the usual number of mining and oil/gas development projects taking significantly longer to develop and costing materially more than expected. The recent resource-equity market slump proves that investors are now far more cautious about investing new capital in the mineral and petroleum resources sector.What have we learned since 2005? Why have projects missed their targets? Why do investors often feel misled?Valuation of a project and the estimation of value is a more complex process than the evaluation of the merits of project development. The merit of project development can be clear from a prefeasibility evaluation, but this is no reason to skip the rigour of a feasibility study. The valuation of any project that is developed with any added risk should be discounted for this added risk.The development of a project impacts on other stakeholders, and the indirect cost of these impacts can have material implications for the cost structure, time and ultimate valuation of the project for its financial backers. The development of new projects (and thereby supply) can also have an impact on commodity prices, and therefore an impact on returns for financial backers.This paper will provide commentary on the author’s experiences and observations as a project developer and operator for 25 years, before becoming a project financier a decade ago.CITATION:Rozman, L I, 2016. Project evaluation and valuation – an investor’s golden rule, in Proceedings Project Evaluation 2016, pp 31–36 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Mar 8, 2016

A belt of serpentinized ultrabasic rocks intrudes a moderately folded geosynclinal sequence of fine to coarse sediments, acid, intermediate, and basic volcanics as well as a batholithic mass of granitic rocks. The ultrabasic body contains small included masses of melanocratic and leucocratic rocks, together with chromium, copper, zinc, and nickel mineralization.

Jan 1, 1969

By A K. Ghosh

"Inrush of water is always an issue, especially for mines located in heavy rainfall areas. Nowadays, mining companies and research institutes have developed many advanced technologies for study and analysis of hydrological processes. In this paper, an advanced method is introduced, which uses the Shuttle Radar Topography Mission Digital Elevation Model (SRTM DEM) data in the Geographical Information System (GIS) platform to simulate the stream distributions around two specific mines: Super Pit and Griffin coalmine in Western Australia. The impact of this approach is important because it reduces the time and economic cost by creating a high spatial resolution hydrological map in the specific areas. The study identifies the flow path of the run-off water, which helps in adopting a suitable water management plan surrounding the case study mines. The results match with the ground reality. Based on the results, the stream structure around Griffin coalmine is more complicated than that of Super Pit. The bifurcation ratio and drainage density are computed to estimate the subsoil permeability characteristics of the two mines. Recommendations have been put forward to prevent and reduce the potential risks of water accumulation around the open pit mines.Citation:Ghosh, A K, 2016. Application of Shuttle Radar Topography Mission Data in Hydrological Analyses of Super Pit and Griffin Coal Mine, in Proceedings Ninth AusIMM Open Pit Operators' Conference 2016, pp 162–169 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

Nov 15, 2016

By Edwards R

Greater efficiency of capture of minus 6 mm to fine micron size particles of free gold is achieved with the Knelson Concentrator. The development, principles of operation and recent innovations relating to this enhanced gravity concentrating device are described by the inventor, followed by a description of application and consequent economic benefits in low grade alluvial gold deposits by a large scale user of Knelson Concentrators in the Northern Territory of Australia.

Jan 1, 1990

By D Craw

Middle and Late Cenozoic fluvial conglomerates and gravel in northeastern Southland record the transport of alluvial gold from Central Otago into Southland, and subsequent reworking and concentration of this gold into economic placer deposits. A corridor of geochemically distinctive, Hg-free gold derived ultimately from veins in Torlesse Terrane schist in Otago extends through the Caples Terrane and into Southland. The initial repository in Southland was fluvial sediment of the East Southland Group, specifically weakly auriferous, quartzose delta plain strata of the Gore Lignite Measures (GLM), a downstream equivalent of Dunstan Formation in Central Otago. Miocene uplift along the northwest trending Old Man Range beheaded the parent river system, isolating GLM from its Central Otago source area and establishing the proto-Waikaia River system. Rising topography between Otago and Southland increased fluvial gradients, and initiated erosion of cover strata and a sequence of tectonically induced gold recycling events. Auriferous GLM were recycled from the hinterland into broad braided fluvial channel and floodplain deposits of the Waikaia Group (new), specifically the highly auriferous Waikaka Quartz Gravels and equivalent Waimumu Quartz Gravels downstream (WQG), superimposing more proximal depositional environments over parts of the former GLM delta plain. WQG were deformed, and locally cannibalised during the later stages of their deposition by reverse movement on north-northeast trending faults of the Dunsdale System (NW side up). Increased tempo of uplift in the hinterland (Old Man, Garvie, Umbrella, and Blue Mountain Ranges) in the Pliocene and early Quaternary resulted in further reworking of GLM and WkQG from the hinterland as well as basement erosion. Progressively more basement-rich detritus was deposited as a locally auriferous piedmont (Gore Piedmont Gravels - GPG) over earlier channel and delta plain (GLM, WQG) strata, extending from the Blue Mountains to Waikaia, and southward through the Gore Gap to beyond Mataura. Southward propagation of the north-northeast trending ranges, local warping, and uplift of the Murihiku Terrane in Pliocene and Quaternary progressively deflected GPG fluvial systems and ultimately constrained them to the present valleys. Pre-existing auriferous strata (GLM, WQG, GPG) were reworked and deposited with or without basement detritus as these fluvial systems migrated toward their present positions. Auriferous remnants of these transitional deposits are preserved in local structural depressions on the uplifted blocks that deflected the systems (eg King Solomon Mine), and on locally abandoned floodplain segments on the lowlands (Pebbly Hills-Gore Gap). The present drainage has continued to incise and cannibalise its own and earlier deposits during late Pleistocene-Recent uplift to form confined channel placers within the present valleys.

Jan 1, 2002

By S H. Algie, E J. Knoblauch, I A. Lovatt, S G. Doig

Mill operating teams are expected to engage in a perpetual quest for process improvement – pushing the boundaries of practical process limits and testing new technology to achieve the next step-change in plant performance. Often the barrier to improvement lies in gaining management approval for process changes.Getting approval for investment in novel technology carries an added degree of difficulty, particularly in risk-averse operations, when it challenges conventional wisdom. A case in point is a new technology for controlling variability in slurry distribution. There is a widely held view that less-than-specified classification efficiency and spraying and roping of individual units in a hydrocyclone cluster, must be accepted as unavoidable. That these are wholly correctable deficiencies resulting from unequal loading of the individual units seems a bold claim. Wouldn’t the high turbulence of pumped slurries overcome all potential for segregation of solids? This paper discusses how the task of developing confidence in a new technology can be approached by a combination of physical modelling at small scale, and full-scale operating experience. Proving efficacy then leads to the next task: demonstrating value. Again, the particular technology serves as an example that could be of value to others developing relatively low-cost technologies. A high-pay-off as an investment may be achieved with improvements in metallurgical performance that are small in relation to normal process variations. This has led to an exploration of how process simulation modelling could be used, in conjunction with production data, to provide a benchmark for the expected change, which could be expressed in monetary terms.The next goal, which is currently being achieved in operating plants, is to realise the greater value now available through the optimisation of cyclone configuration, which becomes practical when the confounding effects of cluster instability are removed through equal loading.CITATION:Doig, S G, Algie, S H, Lovatt, I A and Knoblauch, E J, 2018. Investing in new process improvement technology: reducing the risk of implementation – a way forward, in Proceedings 14th AusIMM Mill Operators' Conference 2018, pp 571–584 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Aug 29, 2018

By N Kado, T Iwama, R Inoue, S Ueda

Steelmaking slags are usually used as roadbed and civil engineering materials. However, the expansion phenomenon, which is caused by the volume expansion during hydration of free CaO and free MgO contained in steelmaking slag, is indispensable. Since the hydration of free MgO in steelmaking slag is much slower than that of free CaO, it is qualitatively considered that free MgO contributes to the hydration expansion of steelmaking slag over a long period of time. Similar to free CaO, free MgO consists of undissolved MgO and crystallised MgO in steelmaking slag. The latter precipitates during slag cooling. When divalent metal oxides (FeO, MnO, CaO) are dissolved in the crystallised MgO to form a MgO-based solid solution, it is expected to inhibit the hydration reaction similar to precipitated CaO. From the previous hydration test of Magnesioferrite, which was calcined after mixing MgO and Fe2O3 reagents, it was found that the higher the Fe2O3 concentration, the slower the hydration reaction progressed. In this study, by clarifying the influence of calcination conditions of MgO-FeO and MgO-FeO-MnO solid solutions, which were prepared by the calcination of mixture of MgO, FeO and MnO reagents, on their hydration reactivity, the effect of composition and thermal treatment on the formation of free MgO that is not hydrated (or easily hydrated) were discussed. To investigate the influence of MgO grain size, coarse MgO particles, which were obtained by crushing MgO crucible, were also used for heat treatment. With increasing the amount of FeO and MnO in the MgO-FeO-MnO solid solution, the hydration reaction became more suppressed. The expansion suppression effect was higher with solid-solved FeO than with solidsolved MnO. When the calcination temperature of the MgO-FeO solid solution was increased, the Fe3+/Fe2+ concentration ratio increased, resulting in a higher hydration rate.

Jun 19, 2024

By C R. Ure

To substantially reduce, if not eliminate, carbon dioxide (CO₂) emissions from ironmaking it is necessary to convert from blast furnace (BF) ironmaking using coking coal as the reductant to direct reduction (DR) ironmaking using hydrogen (H₂) and green electricity. Currently, almost all natural gas (NG) based direct reduced iron (DRI) production utilises iron oxide pellets in shaft furnaces, as opposed to fines in fluidised beds. Also, these pellets are ordinarily produced from high-grade magnetite concentrate, rather than hematite and goethite with typically higher gangue contents. The use of high-grade magnetite concentrate is driven by the preference to melt DRI in conventional electric arc furnaces (EAFs), thereby avoiding the basic oxygen furnace (BOF) for making crude steel (CS). However, in replacing BF with DR ironmaking it is not economically feasible to source enough high-grade magnetite to replace the lower grade hematite and goethite currently consumed. That is not to say that hematite and goethite, or even low-grade magnetite, cannot be used in DR ironmaking. However, their higher gangue content, resulting in higher slag production, requires that the EAF producing CS be replaced with a submerged arc furnace (SAF) that will produce pig iron (PI) for the BOF as does the BF. Here, critical issues to be addressed are, what are the technicalities in replacing high-grade magnetite concentrate with hematite and goethite and NG with H₂ in DRI pellet production and melting? This paper summarises certain relevant published information on DRI pellet research, test work and production together with relevant information on Pilbara ores. It attempts to illustrate the inter- relationship of composition and processing conditions on DRI pellet properties. It is intended to serve as a rudimentary guide to understanding the complexities of formulation, testing, evaluation, production and goethite and offer insight into this challenge.

Sep 18, 2023

By T Y. Dube

In this paper current net present value (NPV) based mine valuation techniques that take into account market and private risk are discussed and analysed. Potential pitfalls that arise from the application of a portfolio, market or commodity based risk metric to a mining project are identified. An alternative non-simulative framework for quantifying and factoring market and private risk in NPV calculations is proposed and then applied to a hypothetical case study in an attempt to overcome identified pitfalls. Mathematical proof that a static discounted cash flow (DCF) calculation can underestimate or overestimate mine NPV is presented, the conditions for each are outlined and the degree of underestimation defined.CITATION:Dube, T Y, 2012. How the use of market-based risk metrics can undervalue good mining projects and overvalue poor ones, in Proceedings Project Evaluation 2012 , pp 29-34 (The Australasian Institute of Mining and Metallurgy: Melbourne).

May 24, 2012

By D Misra, R Ganguli, S Bandopadhyay

The objective of this paper is to assess the accuracy and applicability of recent state-of-art methods such as the machine learning algorithms (MLA) for mineral resource estimation. Conventional methods such as geostatistics have been predominantly used in the mining industry for this purpose with varying success. Recent advances in the use of MLA have provided a fresh approach to obtain improved accuracy in the estimation of mineral resources. Two MLA methods: the neural network (NN) and the support vector machine (SVM) have been used to estimate a polymetallic ore deposit in Alaska.The general characteristic of SVM and NN emphasises the fact that they can approximate any multivariate non-linear relation among variables. Although neural network models are able to capture the nonlinear spatial relationships that may be present in the data, they are usually difficult to optimise under sparse data settings. Of the various NN alternatives, despite their effectiveness, the model selection and estimation process is typically difficult as it involves solving complex integration and optimisation of parameters. In support vector modelling (SVM), estimating of parameters involves optimisation of a convex cost function. The working principle of SVM makes it robust against noisy and extreme value data. At the same time, it can capture the spatial distribution of ore grade more effectively with careful modelling and selection of SVM parameters.The outcome of the MLA methods were compared to those of the geostatistical ordinary kriging (OK) application to study their generalisation ability. The comparison was made using the following goodness of fit criteria: mean-squared error; mean absolute error; mean error; and coefficient of determination. The results indicated that the MLA methods may improve the predictability of ore deposits and thereby reduce the inherent risk in mineral resource estimation.

Sep 26, 2011

By P Jonsén, S Larsson, M Parian, B I. Pålsson

The question of effective energy utilisation in grinding mills is not new. There are several conflicting arguments about tumbling mills, whether the efficiency is around 1 per cent or maybe 10 per cent, or even much lower. The energy not used is assumed to be lost as heating of the pulp, the grinding mill body, the charge, generation of shock waves and vibrations, etc. Stirred media mills on the other hand are generally considered to have better energy utilisation, but their energy efficiency is still not that clear. To shed some light on this a pilot-scale, wet stirred media mill was investigated over a range of operating conditions. The wet stirred media mill is a Drais PMH 5 TEX pearl mill fitted with an electric motor at 11 kW. It has been investigated over a range of operating conditions to try to balance the dissemination of the input energy in forms of the net grinding energy, mechanical energy losses, and the heating transferred to the pulp, the mill, the charge, and the cooling water. It is found that approximately 20–40 per cent of the input energy accounts for the grinding process. Also, that the difference between gross and net input electrical energy is mainly disseminated as heating of the pulp and cooling water. Mechanical energy losses appear to be much smaller than the heating effects. The use of a dispersant seems to mainly influence the heating effect.

Aug 24, 2022

The Energy Authority of NSW has wide powers and responsibilities conferred by its Act which are pertinent to the State's coal industry and its development into the next century. With respect to coal, the broad objective is to maximise the benefits to NSW and its people derived from the State's coal resources. The initial focus of the Authority's coal-related activities in the late 70's and early 80's was on petroleum substitutes from coal. Research was supported, especially on hydrogenation, and the Authority participated in the Joint Australia/Federal Republic of Germany coal-to-oil feasibility study. It also co-ordinated a State Government initiative to involve the private sector in examining the possible establishment of a synthetic fuels industry based on Hunter Valley coal. With a short-fall in world-wide petroleum supply now seen as less likely for some years, the Authority is looking also at ways of working towards the broad objective in the field of coal utilisation on both domestic and export markets. Areas of interest include possibilities for using washery rejects, means of making NSW coal more competitive as an energy source, use of coal-seam gas and new or special technologies for burning coal. The future is expected to see renewed interest in producing petroleum substitutes, and coal - as the State's major energy resource - is seen as a strong contender as a basis for such an industry. Developments in coal-based power generation are also expected to have an impact, with advanced technologies having a possible place here as well as Overseas.

Jan 1, 1987

By C Harrison, A Bowskill

The Ambuklao hydroelectric dam was originally constructed in the 1950s in the remote and mountainous region of the northern Philippines. Following its construction the dam has suffered heavily due to siltation and a partial collapse of the intake structure due to a 7.8 magnitude earthquake that struck the region in 1990. Between the years 1990 and 1999 the power station progressively lost its capacity to generate power. In 1999 the owner took the power station out of commission. The power station remained idle over the next 12 years. In 2008 the power station was sold to a new owner who commissioned the rehabilitation works.The rehabilitation project restored the operating status of the power station in June 2011 and increased its capacity from 75 MW to 105 MW. The civil contract of the rehabilitation project required the construction of a new intake structure behind an in situ rock coffer dam on the edge of the existing reservoir, new 6.2?m diameter × 124?m deep blind sunk shaft behind the intake structure, which connects to a new 6.8?m horseshoe profile headrace tunnel that ultimately connected onto the existing vertical penstocks which feed three No 35 MW Horizontal Turbines rated at 155?m head.The unique challenge in rehabilitating this existing hydropower station involved finding solutions that would conclusively deal with the challenging geological and hydrogeological conditions associated with excavating new tunnels and a drop shaft beneath a live dam.McConnell Dowell was awarded the civil works package for the rehabilitation works in August 2008. The Ambuklao rehabilitation program took 33 months to complete.Over 600?m of tunnels were excavated in highly weathered and often challenging geotechnical conditions via drill and blast with the extensive use of high-pressure fissure grouting to control groundwater ingress that was surcharged by the dam.This paper focuses on the use of high-pressure fissure grouting that took place to enable the excavation of the new waterway system and intake structure.CITATION:Bowskill, A and Harrison, C, 2014. High-pressure fissure grouting for drill and blast tunnelling, Ambuklao, Philippines, in Proceedings 15th Australasian Tunnelling Conference 2014 , pp 141–152 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 17, 2014

Gold mineralisation at the Enterprise Mine, 230 km south of Darwin, occurs within folded and metamorphosed sediments of the Lower Proterozoic Burrell Creek Formation adjacent to the Cullen Granite. The mineralised zone, which occupies an area of approximately 800 m x 300 m is local- ised by a moderately tight, upright symmetrical anticline which plunges shallowly southwards. The anticline has been disrupted by numerous faults on which the maximum movement is 40 m. Gold is associated with quartz and sul- phide veins which are present as saddle reefs, inter-reef veins and fault controlled reefs. it occurs within the veins or their alteration haloes, either as free gold (2 - 50 per cent of total gold content) or intimately associated with sulphides, principally arsenopyrite and Pyrrhotite.

Jan 1, 1984

By Cutmore NG

The moisture content of iron ore is important in handling, stockpiling, transport and further processing operations. Typically these ores contain both `free' and `bound' moisture, the latter being moisture that is not removed in a conventional laboratory determination of moisture by air drying at 105¦C, and it is the free moisture that is important in dust control and ore handling. The CSIRO Division of Mineral and Process Engineering has previously developed and commercialised gauges, based on capacitance and microwave techniques, for the on-belt determination of moisture in coal and minerals. However, these gauges determine total moisture, and have a different sensitivity to free and bound moisture in the material analysed. Consequently, the accuracy of determining total or free moisture alone may be significantly affected by variations in the bound moisture content. An investigation has been carried out on the simultaneous determination of free and bound moisture in iron ore fines (

Jan 1, 1993

By R Lastra, Y Choi, C Hamilton, P Kondos

Hydroseparation (http://www.cnt-mc.com) was used to concentrate sized fractions (from <38 ¦m to 150 ¦m) of various ore products ahead of carbon-in-pulp (CIP)-treatment. The resulting size-by-size concentrates were mounted as monolayer polished sections and subjected to automated unattended precious metal searches by image analysis (see Lastra, Wilson and Cabri, 1999). Systematic variations in Au-deportment permit quantification of Au reporting as discrete grains from fresh-feed through to pressure oxidation (POX)- and CIP-feed. Application of hydroseparation, image analysis and assays to characterising tailings (from <10 ¦m to 106 ¦m) from four mine sites is also described. Results are encouraging enough to predict that the combination of hydroseparation (HS) and automated image analysis could become a standard methodology for study of precious metal ores and metallurgical products.

Jan 1, 2008

By D Semini, B Newcombe

Base-metal sulfide refractory gold ores often contain a portion of ‘free’ gold that is amenable to recovery using gravity concentration methods, whilst the refractory portion of the gold is better recovered using flotation. The decision as to whether a plant treating a refractory gold ore should utilise gravity concentration or a flash flotation circuit (or a combination of both) within the grinding circuit is usually made at the design stage of flow sheet development. Very limited data is available in the published literature which provides an industrial scale comparison on which to base such a decision and conventional laboratory testing methods are often the only way of obtaining such data. The optimum processing route will also be mineralogy dependent.This paper presents the findings of operating a refractory gold plant with either flash flotation (normal operation) or a combination of flash and gravity recovery methods treating the cyclone underflow stream and will demonstrate the regions of the recovery profile that each contributes to. Size-by-assay analysis has been performed on a number of streams around the operating plant to gain an insight into the changes that occur when the gravity circuit is in operation in addition to the flash flotation circuit. A discussion around the implications to overall plant operation in combining the use of a batch process (gravity concentration) with a continuous process (flotation) is presented.CITATION:Newcombe, B and Semini, D, 2014. Interactions between flash flotation and gravity concentration – an industrial case study of a refractory gold concentrator, in Proceedings 12th AusIMM Mill Operators’ Conference 2014 , pp 427–436 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Sep 1, 2014

By Smith C. B

Major diamond pipes discovered in Western Australia in the late-1970s exhibited a number of unique features that not only resulted in Australia becoming the largest diamond producer in the world in volume terms by 1986 but also changed geological thinking on the primary occurrence of diamond. They were: - lamproite is an alternative primary diamond host to kimberlite. - the extremely high mean grade of the Argyle lamproite pipe at 5 ct per tonne. - the tectonic setting of the lamproite pipes in mobile zones mar- ginal to the Kimberley Craton in contrast to the traditional African setting within stable cratons. Diamond was one of the earliest economic minerals discovered in Australia but 128 years elapsed between its first recognition and the first Australian economic pipe discovery (Argyle). During that period some 200,000 ct of alluvial diamonds were mined in Australia (mostly in New South Wales), but such alluvial output is insignificant on the world scene where annual production today runs at 95 million ct of natural stones some 76010 of which comes from primary pipe sources such as Argyle which alone produces 30 million ct per annum. Of particular significance therefore is the geological nature of the primary diamond source rocks in Australia. The Argyle and Ellendale Pipes are lamproites, differing from kimberlite in their mineralogy and geochemistry, and characterised by the presence of typical lamproite minerals such as leucite, priderite, potassic richterite, and the abnormally high content of chemical elements incompatible with ultramafic rocks. But not yet widely appreciated is that many other Australian olivine-rich lampro- phyres also contain diamond. Such picritic alkaline rocks can

Jan 1, 1988

By L L. Kuhar

The AMIRA International P843A Geometallurgical Mapping and Mine Modelling (GeMIII) project is an interdisciplinary research collaboration between 17 global mineral companies and four research organisations aimed at providing support for the emerging industry trend of geometallurgy. The main aim of the project is to develop predictive geometallurgical indices which can be incorporated into a resource block model to maximise the commercial value of an orebody and to minimise the social and environmental impact of mining operations.Researchers at the Parker Centre/CSIRO have been focusing on the development of predictive hydrometallurgical indices for the GeMIII project via rapid, small-scale, cost-effective tests and protocols for comparative ranking of attributes relevant to leach performance. The focus of the small-scale leach tests has been to determine the leach index (relative indication of leach performance), recovery, impurity deportment, reagent consumption, effect of size/degree of liberation and mineralogy of samples for their relative ranking. Predictive tests for heap leach hydrology (related to agglomerate characteristics) and slurry rheological behaviour are also being developed.

Sep 5, 2011

By Mahyera A, Sakashita B, Ahmed U, Abou-Sayed AS

Gas in U.S. coals is primarily composed of 90 to 99 percent methane and up to 10 per- cent carbon dioxide. In composition and heat- ing value, this coal-bed gas is similar to natural gas and can be introduced directly into commercial pipelines after standard condition- ing. The high permeability cleat system in the virgin coal can be exploited in order to drain the coal gas well in advance of mining. Two premining drainage methods have been extensive- ly evaluated in the U.S.; they are 1) horizon- tal boreholes collared from within the mine, and 2) vertical drilling from the surface with fracturing. Limited-size fracture treatments are advocated in order to prevent potential roof damage and the need for added support. An engineering approach to predicting gas flow for different drainage techniques near mining locations is presented. Results can be used in design, i.e. pipeline, compressor. Coal gas drainage from a horizontal borehole and a treated (contained fracture) vertical well for a 6 foot seam have been evaluated. Based on these results, it was concluded that selection of gas drainage techniques will depend primar

Jan 1, 1982